Marketing 4th Edition by Dhruv Grewal,Michael Levy

Exercise 3

Assume you have decided to buy an advertisement in the local newspaper to publicize your new pet grooming service. The cost of the ad is $1,000. You have decided to charge $40 for a dog grooming, and your variable costs are $20 for each dog. How many dogs do you have to groom to break even on the cost of the ad What is your break-even point if you charge $ 60 per dog